fecting it. If
you make this a fixed charge you will take care of it, and you will
arrange your business and your purchases so that this fixed charge will
be properly taken care of each month. You will trim your expenses a
little closer, and your business will thus benefit by having this fixed
charge.

Nearly every failure is due to sudden calls of creditors or refusal
of the bank to extend further credit. This fact shows plainly the
necessity of having a reserve fund.

Take your figures for several years back and find what percentage of
the total receipts was profit. If, for instance, your business earned
$9,000 and your total sales were $100,000, then 9% of your receipts
represents profits. You can therefore declare a monthly dividend of 8%,
and when Christmas comes you will have an extra dividend, being the
accumulated 1% each month you did not draw out in dividends.

Debt

If it were not for debt most banks would go out of business, for banks
live because debt is a recognized factor in business.

The plan of getting rich through saving is a very difficult and
practically impossible road to wealth.

The man who is working himself out of debt puts in better effort and
longer hours into his business than the man who does not owe a cent. Go
in debt reasonably and carefully, and you can make money with other
people's money.

Money has a fixed value in itself in the matter of earning capacity.
This fixed value is 5% or 6% or 7% as the case may be. One who puts his
money in securities gets his money which the cash earns without effort
on his part. The hustler, however, can make 10%, 15% or 20% on the
money, plus his hard work. Therefore there is an opportunity for a
hustler to borrow money at 5% or 6%, and with that money and his energy
earn 10% or 15%.

The active man can therefore pay 6% per annum for money, and use that
money to discount monthly bills at from 2% to 5%.

The building and loan association, the installment firms and monthly
payment real estate concerns show what people can accomplish who go
into debt. Thousands of families now live in their own homes because
they went into debt. Few of these families would have homes if they
started in on the saving-the-money-first plan and bought for cash.

Don't go in too deeply. Calculate your earnings in business. Allow a
wide margin for discount on your figures. Hard times and unlocked for
reverses come, therefore you should play safe. Go into deb